EU Sets Ambitious Path to Boost Green Industry with Net Zero Industry Act

Tuesday, 06 February 2024

The European Union is making significant strides towards bolstering its green industry, with the Net Zero Industry Act (NZIA) at the forefront of these efforts. Introduced on 16 March 2023, the NZIA is designed to enhance the EU's manufacturing capabilities in net zero technologies, crucial for transitioning to a climate-neutral future. The Act is part of the Green Deal Industrial Plan and aims to create a predictable and simplified regulatory environment conducive to investments in clean technology production.?

The NZIA targets a substantial increase in the EU's strategic net zero technologies manufacturing capacity, aiming for at least 40% of annual deployment needs by 2030. This initiative is expected to propel the EU towards its 2030 climate and energy targets and the broader goal of climate neutrality by 2050. The Act focuses on key technologies such as solar photovoltaic and thermal, wind energy, battery storage, electrolysers, sustainable biogas, carbon capture and storage (CCS), and grid technologies. It also introduces measures to facilitate investments, reduce administrative burdens, and enhance skills through dedicated training programmes.

In November 2023, the European Parliament adopted its position on the NZIA, ready to commence negotiations with the Council on the final legislation. The Parliament's industry committee has proposed broadening the Act's scope to include a more comprehensive list of technologies and components and to expedite the permit process for clean energy projects.?

Furthermore, the European Commission has introduced the European Hydrogen Bank (EHB) to support the uptake of renewable hydrogen within the EU, a critical element in achieving the EU's climate targets. The EHB will facilitate private investments in hydrogen value chains, connecting renewable energy supply with demand, and addressing initial investment hurdles.

These initiatives highlight the EU's commitment to leading the green transition, reducing dependency on imports, and ensuring a resilient and competitive clean energy industry. The NZIA and the establishment of the EHB are poised to drive Europe's ambition to become a global leader in clean technology and climate neutrality.